What are charity credit cards?
Charity credit cards are credit cards which allow you to donate your rewards or money to a charity of your choice. There are a variety of charity credit cards available on the market and you will still need to pass the eligibility requirements of the charity credit card before you will be accepted for it.
Your charity credit card could provide rewards to a lot of charities offering different solutions. you can inquire to find out which charity the charity credit card you which to obtain supports.
How do charity credit cards typically work?
Charity credit cards have various methods in which they achieve their main goal of getting funds to those in need but in most cases, you might see them in this fashion.
Annual amount donation:
With this, the charity credit card will donate a fixed amount to the charity for every year the charity credit card is open.
Lump sum donations:
With lump-sum donations, the charity credit card issuer could make a lump sum donation to the charity once you have been approved for a credit card.
Regular monthly donations:
With regular monthly donations, the charity credit card issuer may donate a percentage of what you spend to the charity credit card provider.
How to donate rewards from your charity credit card
You can usually donate the rewards from your credit card through the charity credit card issuer or through a travel partner brand. Some charities will accept reward points or reward miles.
You may be able to donate to a charity of your choice online or through your credit card app.
You could also call your charity credit card provider o find out how to donate.
Your donations could allow the charities to fly sick children or fly staff to where they are needed most.
Beware of random unverified websites which claim to donate your miles for you as these could simply be scams.
You should also know that some charity credit card issuers may charge the charity for using their cards s a way of raising funds. You should inquire with your charity credit card issuer to know if this is the case and how much of your donations actually make it to the charity.
The cons of charity credit cards
Charity credit cards aren’t all as good as they seem. Infact some charity credit cards don’t actually give any money to the charity credit card issuer but rather simply advertise the charity by using their branding.
Most charity credit cards offer a percentage of your spending as a donation to the charity but these percentages are so small that you will have to spend incredible amounts on your credit cards before a £1 monthly donation could even be feasible.
A charity offering 0.25% of your monthly spending to the charity each month will need you to spend £400 per month for the charity to receive £1 from your charity credit card.
Cashback credit cards have been identified as a possible alternative to charity credit cards.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.